thoughts from a non-holder that has been checking on RZI for some time.
cutting off the 'cancer' being the Asian operations would appear good for the bottom line in the short term (and maybe ultimately the long term), but from an investment thesis it also cuts off what would have been seen as significant pathway to growth. IMO Raiz needs to provide evidence to the market they have a workable plan to regain this 'lost' future growth. If they are not able to convince the market that they are a 'fintech growth stock' then they are just another money manager being priced on FUM and the shareprice multiple will stay depressed.
Upping their game in superannuation would be a logical growth opportunity but it is a crowded market. Also, showing that they can get more of the Australian signups to convert to Active funded accounts would be a good start. Maybe they need to run some limited offer promos, eg, if you set up a weekly transfer of funds the monthly fee is lowered for the next 3 months...or similar arrangement.
RZI Price at posting:
33.0¢ Sentiment: None Disclosure: Not Held
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